The Legal Mistake Justin Baldoni Made That Ended His $400M Countersuit Against Blake Lively

Justin Baldoni, the director and co-star of It Ends with Us, has suffered yet another legal defeat after his $400 million defamation countersuit against actress Blake Lively was officially shut down by a federal judge.

The ruling comes after Baldoni failed to file an amended complaint following the court’s dismissal of his original case back in June. 

Judge Lewis Liman confirmed the lapse in a final order issued on October 31, formally closing the countersuit and leaving the internet speculating about how a multimillion-dollar claim could collapse over what appears to be a procedural mistake.

“Special shout-out to Justin’s fans who seriously believed he had a case,” one of Lively’s fans celebrated online.

Justin Baldoni’s $400 million defamation countersuit against actress Blake Lively has been officially shut down

Image credits: Getty/Jeff Spicer

On October 17, Judge Liman notified both parties that he intended to enter final judgment unless a new filing was made. Only Blake Lively’s side responded.

According to documents, the 38-year-old actress asked the court to issue the final judgment while keeping her request for legal fees active.

The judge agreed.

Image credits: Getty/NBC

The decision marks the latest chapter in a long, chaotic feud that began last December when Lively filed a lawsuit accusing Baldoni of misconduct on the set of It Ends with Us and of leading a retaliatory smear campaign after she reported his alleged behavior.

Image credits: Sony Pictures

Baldoni, on the other hand, denied all accusations and responded with a $400 million countersuit against Lively, her husband Ryan Reynolds, and her publicist Leslie Sloane, claiming defamation and civil extortion, as well as stating they tried to wrestle control of the movie away from him.

Image credits: Getty/Aeon

In June, Judge Liman dismissed Baldoni’s countersuit in its entirety, finding that Lively’s harassment allegations were legally protected under California’s anti-SLAPP statute, a law designed to safeguard speech made in connection with matters of public concern, including reports of misconduct.

Image credits: Getty/Jose Perez/Bauer-Griffin

The judge noted that Baldoni’s filing failed to demonstrate his opponents had acted with “actual malice” or serious doubt about the truth of her claims.

He also threw out Baldoni’s separate $250 million defamation suit against The New York Times on the same grounds.

Lively’s team celebrated the outcome while Baldoni’s dismissed it as nothing more than a false victory

Image credits: Variety

After the June ruling, Lively released a statement expressing the emotional toll the countersuit had taken on her. 

“Like so many others, I’ve felt the pain of a retaliatory lawsuit, including the manufactured shame that tries to break us,” she wrote on Instagram. “While the suit against me was defeated, so many don’t have the resources to fight back.”

Her lawyers called the outcome “a total victory and a complete vindication.” Attorneys Esra Hudson and Mike Gottlieb added, “As we have said from day one, this ‘$400 million’ lawsuit was a sham, and the Court saw right through it.”

Image credits: blakelively

But Baldoni’s legal team quickly pushed back.

Baldoni’s attorney, Bryan Freedman, fired back the following day, accusing Lively’s team of celebrating a predictable false victory.

“This case is about false accusations of s*xual harassment and retaliation and a nonexistent smear campaign,” Freedman told People Magazine.

“Ms. Lively’s own team conveniently describes it as ‘untraceable’ because they cannot prove what never happened,” he added.

Baldoni’s supporters were left scratching their heads at what they believe was a catastrophic mistake by his team

Image credits: blakelively

In January, a judge scheduled the trial for Lively’s ongoing lawsuit for March 9, 2026, with a pretrial conference set for February 3. Both actors are expected to attend.

The now-ended countersuit had been seen as Baldoni’s strongest attempt to defend himself against Lively’s claims, making the missed filing deadline all the more perplexing to fans and observers. 

On social media, users debated whether the lapse was a “strategic retreat” or a “catastrophic legal error.”

“Did his team just forget?” one user asked on X. “How does a $400 million case end because of a missed deadline?”

Image credits: Sony Pictures

For now, Baldoni’s legal team has indicated that they intend to appeal, setting the stage for another round in a battle that has already consumed both careers and divided Hollywood.

Netizens are already speculating on what Baldoni’s next move could be.

“This is a settleable case. Will Baldoni cut his losses? It’s not like he’s going to have a high income stream in the future; he needs to get what he can.”

“He’s gonna need a GoFundMe.” Many believe the decision spells doom for Baldoni

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